The European Parliament’s International Trade Committee approved financial assistance of €4 billion for Egypt and €500 million for Jordan. This decision highlights support for stabilizing the region amid economic challenges. Further approvals will occur in April 2025 before disbursement.
On Thursday, the European Parliament’s International Trade Committee approved two financial assistance proposals for Egypt and Jordan, amounting to €500 million for Jordan and €4 billion for Egypt. The application for macro-financial assistance (MFA) for Egypt received 28 votes in favor and 7 against, while Jordan’s MFA was passed with 35 votes in favor and 2 against.
Egypt requires significant support due to its precarious economic situation and its role in stabilizing a geopolitically tense region. The Commission proposed €5 billion in loans for Egypt, structured as a short-term loan of up to €1 billion, already disbursed, and a regular operation of up to €4 billion to be distributed in installments. Recently, the International Trade Committee endorsed the latter assistance.
This marks the fourth MFA for Jordan since 2013, addressing its residual financing needs and supporting reforms and fiscal consolidation. In January, the Commission also announced additional assistance for Jordan to confront various challenges.
Celine Imart (EPP, France), the rapporteur, stated, “The International Trade Committee’s backing for this EU loan reflects this Parliament’s high regard for Egypt as a partner country. By helping Egypt, we are also looking after EU interests in an unstable region.” She emphasized the importance of the EU loan for Jordan, which supports the new partnership between the countries announced at a high level.
The next steps entail voting on these reports during the Parliament’s plenary session in April 2025. The financial assistance will only be dispensed after approval from both the Parliament and the Council. These loans form part of broader financial support initiatives for EU partner countries facing economic and political challenges, aimed at facilitating structural reforms.
The European Parliament’s International Trade Committee has taken significant steps to provide substantial financial assistance to Egypt and Jordan, addressing urgent economic needs and promoting stability in the region. The approval of €4 billion for Egypt and €500 million for Jordan underscores the commitment to support strategic partnerships and structural reforms. With upcoming votes, the process remains pivotal for the assistance’s disbursement and impacts on both countries.
Original Source: europeansting.com
